Middle Market Suppliers: GM Bankruptcy Deal Must Protect Tier 2 and 3 Auto Companies

WASHINGTON--(Business Wire)--
The Precision Metalforming Association (PMA) and the National Tooling &
Machining Association (NTMA) strongly urged the U.S. government and bankruptcy
courts today to ensure the continued solvency of middle market suppliers by
requiring that Chapter 11 bankruptcy protection for General Motors Corporation
include payment of outstanding accounts owed to their supply chain, particularly
Tier 2 and Tier 3 suppliers of components and tooling.

"Tier 1 and Tier 2 suppliers need relief and a crucial element is for the
government and courts to provide a 'safe passage' mechanism for our tooling
receivables through the Tier 1 suppliers during this bankruptcy," said NTMA
Chief Operating Officer Rob Akers. "Bankruptcy protection for GM must not be
confined to guarantees for GM and its Tier 1 suppliers. The fate of tens of
thousands of workers spread throughout the supply chain - and throughout
thousands of communities across the United States - depends on fair treatment by
GM, the U.S. government and bankruptcy courts."

"The federal government has spent hundreds of billions of dollars extending
support to financial institutions, General Motors, Chrysler and large Tier 1
companies, but the benefits have yet to trickle down to the Tier 2 and Tier 3
supply chain companies," said PMA President William Gaskin. "We are not asking
for a bailout. We are only asking that the government and the courts ensure that
GM and its Tier 1 suppliers pay the money that is owed to Tier 2 and 3
companies. Typically lower tier suppliers to GM and Chrysler also make tools and
components for Ford and even the new domestic auto manufacturers, so a cascade
of failures at the Tier 2 and Tier 3 levels because their cash flow issues are
not properly addressed could shut down the entire U.S. automotive industry.

"The thousands of small and medium sized manufacturers who make up the Tier 2
and 3 companies are vital to our economy and to an ultimately successful
turnaround for the car companies," said Gaskin. "A recovery plan for GM is
simply not viable unless the entire automotive supply chain - not just the Big 3
and the Tier 1 suppliers - is taken into account."

About NTMA:

NTMA is the national association representing the precision custom manufacturing
industry, which employs more than 440,000 skilled workers in the United States.
Its mission is to help members of the U.S. precision custom manufacturing
industry achieve business success in a global economy through advocacy, advice,
networking, information, programs and services. Many NTMA members are privately
owned small businesses, yet the industry generates sales in excess of $40
billion a year. NTMA`s nearly 1,600 member companies design and manufacture
special tools, dies, jigs, fixtures, gages, special machines and
precision-machined parts. Some firms specialize in experimental research and
development work.

About PMA:

PMA is the full-service trade association representing the $91-billion
metalforming industry of North America. Its nearly 1,200 member companies
include metal stampers, fabricators, spinners, slide formers and roll formers as
well as suppliers of equipment, materials and services to the industry. Through
advocacy, networking, statistics, the Educational Foundation, METALFORM
tradeshows and MetalForming magazine, PMA helps lead innovative member companies
toward superior competitiveness and profitability.

Visit www.metalworkingadvocate.org for additional information on PMA and NTMA.

for PMA
George Felcyn, 202-828-1715
george.felcyn@bgllp.com

Copyright Business Wire 2009